Cloetta Interim Report Q3 2015 - Presentation

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Q3 2015 results – 10 November 2015

David Nuutinen, CEO

Danko Maras, CFO

Jacob Broberg, SVP IR

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Q3 highlights

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Strong sales growth and improved operating profit

• Net sales for the quarter increased by 12.0 per cent to SEK 1,459m (1,303),

including a positive impact from foreign exchange rates of 1.2 per cent.

• Operating profit increased to SEK 212m (178).

• Cash flow from operating activities increased by SEK 99m to SEK 174m (75).

• Net debt/EBITDA was 3.39x (4.30).

• On 17 July 2015 Cloetta acquired Locawo B.V. (Lonka) – a Dutch

company that produces and sells fudge, nougat and chocolate.

Lonka had net sales of approximately SEK 300m in 2014.

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Overall market and sales development

Sales growth of 12 per cent

• Positive total market developments, except in the

Netherlands and Italy

• Organic growth 4.2 per cent for the quarter

• Sales grew in all markets except Finland, Norway

and Italy.

• Positive sales trend in Sweden driven by Pick &

Mix and in Denmark by pastilles. Positive trend in

the Netherlands and Germany in candy bags.

• In Norway, sales of pastilles declined and in

Finland sales of candy bags declined.

• Contract negotiations with one large customer

that affected sales have now been finalized.

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Cloetta´s main markets

SEKm Jul-Sep

2015

Margin

% Change %

Jul-Sep

2014

Margin

%

Net sales 1,459 12.01) 1,303

Adjusted operating profit2) 194 13.3 0.5 193 14.8

Operating profit (EBIT) 212 14.5 19.1 178 13.7

Profit for the period 130 49.4 87

Net sales and EBIT

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1) Organic growth at constant exchange rates and comparable units 4.2% for the quarter and 3.0% for

the first three quarters of the year.

2) Operating profit, adjusted for one-off items.

Changes in net sales

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Changes in net sales, % Jul-Sep

2015

Jan-Sep

2015

Organic growth 4.2 3.0

Structural changes 6.6 3.6

Changes in exchange rates 1.2 1.9

Total 12.0 8.5

-4,1%

1,4% 1,6%

0,6%

2,2%

-0,6%

1,7%

4,0%

0,8%

4,2%

3,0% 3,6%

5,8%

4,8%

2,7%

1,2%

6,6%

4 400

4 600

4 800

5 000

5 200

5 400

5 600

5 800

-6,0%

-4,0%

-2,0%

0,0%

2,0%

4,0%

6,0%

8,0%

Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015

Organic growth

Structural changes

Net Sales LTM

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Net sales, Operating profit (EBIT) and

Operating profit, adjusted

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Net sales Operating profit (EBIT) Operating profit, adjusted

1193 1 238 1 303

1 579

1 313 1280

1459

0

200

400

600

800

1 000

1 200

1 400

1 600

Q1 Q2 Q3 Q4

SE

Km

2014 2015

52

85

178

262

90

130

212

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

2014 2015

74

108

193

257

108

133

194

0

50

100

150

200

250

300

Q1 Q2 Q3 Q4

SE

Km

2014 2015

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-16 -23

54

116

91

44

75

290

223

163 174

-50

0

50

100

150

200

250

300

350

Q1 Q2 Q3 Q4

SE

Km

2013 2014 2015

Cash flow from operating activities

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Cash Flow 8

SEKm Jul-Sep

2015

Jul-Sep

2014

Cash flow from operating activities before changes in working capital 236 152

Cash flow from changes in working capital -62 -77

Cash flow from operating activities 174 75

Cash flows from investments in property, plant and equipment and

intangible assets

-30 -38

Cash flow from other investing activities -206 -13

Cash flow from investing activities -236 -51

Cash flow from operating and investing activities -62 24

Cash flow from financing activities -28 -51

Cash flow for the period -90 -27

2,0

2,5

3,0

3,5

4,0

4,5

5,0

2013Q1

2013Q2

2013Q3

2013Q4

2014Q1

2014Q2

2014Q3

2014Q4

2015Q1

2015Q2

2015Q3

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Financial leverage

Net debt/EBITDA, x

Target

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Integration of Lonka according to plan

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Will over time support Cloetta’s margin target of 14% operating profit, adjusted

• Sales development and profitability according to plan in the quarter

• Joint sales and marketing organisation created in the Netherlands

• Plans for how to handle and launch Lonka in other markets under

preparation

• Efforts to coordinate and integrate factories and working methods

started

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In focus

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Seasonal sales

including pricing in

Italy

Initiatives within

Pick & Mix

Integration of

Lonka Profitable growth

Q3 selection of product launches 12

Italy

Sperlari chocolate Almonds

Sperlari dark chocolate Orange

Sperlari Almonds/Blackcurrant

Finland

Mini-bags x 8

Tupla+Protein

Tupla+Energy

Cloetta Sprinkle Latte Crunchiatto

Sweden

Läkerol YUP Cola Sour

Polly Puffar Sea Salt

Ahlgrens raggarbilar limited edition

Cloetta Crispy Bite x 2

Nutisal Dry Roasted Peanuts x 3

Sweden and Norway

Gott&blandat Supersalt

Norway

Malaco Sild x 3

Denmark

Lagerman Lakridskonfekt

Blå Knap and Choko Sandwich

Sweden, Norway

and Denmark

Center Mint

Rest of the World

Läkerol Pink Guava

Läkerol Green Apple

The Netherlands

Lonka Vlinders

Lonka Hartjes

Red Band Zure Bliksems

Red Band Winegum Vissen

Red Band Dropfruit Smiles

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Disclaimer

• This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an invitation or offer to acquire, purchase or subscribe for securities. By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations.

• This presentation is not for presentation or transmission into the United States or to any U.S. person, as that term is defined under Regulation S promulgated under the Securities Act of 1933, as amended.

• This presentation contains various forward-looking statements that reflect management’s current views with respect to future events and financial and operational performance. The words “believe,” “expect,” “anticipate,” “intend,” “may,” “plan,” “estimate,” “should,” “could,” “aim,” “target,” “might,” or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include but are not limited to the Company’s ability to operate profitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in its portfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.

• The information and opinions contained in this document are provided as at the date of this presentation and are subject to change without notice.

• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person’s officers or employees accepts any liability whatsoever arising directly or indirectly from the use of this document.

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Investor Relations

Cloetta Interim Report Q3 2015 - Presentation